Boyne Falls School District looks to community for budget cut suggestions

May 14, 2010|By Alice Perrault News-Review Staff Writer

BOYNE FALLS – The tension was high as school board officials in Boyne Falls discussed ways to reduce expenses with its community Wednesday night.

In the beginning of the community forum, some of the staff including Laurie Howell, Jacque Grebe and Diana Knapp presented information to the board about efforts staff were making to help the school.

They read from a sheet containing many quotes such as: “Did you know two teachers expressed interest in taking a year off to help meet the financial needs of the school?” and “Did you know that the Boyne Falls Education Association (teachers union) has repeatedly stated that if there is a concrete financial crisis at Boyne Falls Public School, the teachers will request a financial analysis by the Michigan Education Association as the first step toward opening up the current teachers’ contract?”

A moment of silence followed before superintendent Gary Urman gave an overview of the district’s financial status. As of now, Boyne Falls has $2,900,000 in revenue and $3,000,000 in expenditures. There is $612,688 dollars in the general fund. The projected fund balance at the end of the fiscal year on June 30, is $200,000.

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One large factor affecting the district’s budget is the Boyne USA Michigan Tax Tribunal case. Boyne Resorts is arguing about the taxable value of some of its Boyne Falls-based property.

According to Urman, a settlement has been reached between the school district and Boyne USA.

Urman said the school is expected to pay $230,000 to Boyne Resorts, $40,000 in lawyer fees, and $50,000 back to the state because of a lower taxable value on business. The school plans to pay the fees out of its general fund.

“It (the agreement) wasn’t the worst case scenario with Boyne, but it wasn’t the best either. We have considered making payments, but we were advised by our lawyers that paying it off now would save us interest expenses,” Urman said.

With this loss in revenue in mind, the board told the audience cuts have to be made. Suggestions made included cutting four teachers, cutting back on busing, cutting the administration department and combining the fifth and sixth grade classes.

Kim Whitley has an 8th-grade student in the school. She was concerned about those suggestions.

“I don’t want to roll over and give up. Hearing you talk about getting rid of four teachers on top of the ones you laid off scares me,” she said.

Others were concerned about combining the classes and if that is what was best for the students.

“No, it’s not what’s best, but it is what we have to deal with. We have no choice but to make some tough decisions. Our goal is to remain a k-12 district,” Urman said.

“We can keep going as we have been and spend our general fund. Then we would be in a bankruptcy-like situation. The state will not allow that to happen, they will force us to make any cuts necessary to pay off our expenses. We have to make cuts somewhere, and no matter where we make those, someone’s not going to be happy."

No decisions were made on final cuts. The board will discuss the issue further at its next meeting at 6 p.m. Monday, May 17. For more information call the school at (231) 549-2211.